AUD/USD: the quiet before the Chinese storm?

FXStreet (Guatemala) - AUD/USD is consolidated and has been since the middle of the US session as we wind down for the week after a series of events that included the dovish FOMC and a bullish set of CPI numbers for the Australian economy.

These numbers surprised to the upside and the Aussie has taken a positive flight path since then, riding the 20 sma on the hourly sticks and supported by the 100 sma in the same time frame on dips.

China quiet, for now

The Chinese markets have seemed to stablize ahead of the Chinese New Year at the start of next month, while the Yuan has been a non-eventfor a number of sessions since the Chinese stock rout and subsequent intervention from the Chinese authorities doing as much as possible before the Chinese New Year. But how long will that last?

So will we see a continued respite in markets while China are out? We will be looking ahead to the RBA although data might be more eventful given the RBA are widely expected to remain on hold, especially now after the upside surprise CPI's

Technically, AUD/USD registered a close above the 0.7017 November low and has been better bid ever since. Meanwhile, Valeria Bednarik, chief analyst at FXStreet explained," In the 4 hours chart, the technical indicators are also turning south from overbought territory, but the pair holds above its 200 EMA and the 20 SMA this last with a strong bullish slope, all of which maintains the risk towards the downside limited.

Should the pair manage a further score through 0.7100, the 55 day ma at 0.7141 comes back into focus and that guards a return to 0.7221, the 78.6% retracement.

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